Why are the corona support packages not being extended?

For a few months, there has been talk about stopping the corona support packages, because the economy is recovering. The expected economic growth in 2021 is substantial at around 4%. This is enough reason for the cabinet not to renew the support packages after 1 October.

The letter to parliament for the fourth quarter states that the CPB has already warned about continuing with the support packages. This would have a negative effect on the economy's recovery. This negative effect is partly due to the large staff shortage.

As long as the support packages remain, it would prevent people from moving to places where they are desperately needed. In addition, the dynamic of starting companies and companies that quit has been significantly disrupted. There must be more space for starting and innovative entrepreneurs. According to ministers, this healthy dynamic will only return when support stops.

No major wave of bankruptcy expected

Many entrepreneurs are afraid that stopping support is too early and that they will run into financial problems. Economists say, on the contrary, that the support should not have lasted much longer. If we look at the CPB's expectations, they foresee not a big wave of bankruptcy when the support packages disappear, precisely because the economy is growing again.

The bankruptcies that will fall are the companies that will be kept alive by the support. These are most likely the companies that would not have survived in a normal situation either. Extra support is being considered for clubs and discotheques. What this means exactly is not yet clear. They will probably have to remain closed after 1 October.

Over the next 6 months, investments will be made in growth

We expect an increase when it comes to growth investments. But at the moment, entrepreneurs need to take stock first. All advances, subsidies and support must be reimbursed. You can read how it works with refunding here. Even if you have received a tax deferral, you are expected to pay tax again as of October 1, 2021.

Despite everything that has to be paid back, economic growth of 3% is expected in 2022, which means that companies are growing and also investing in their own growth. Due to the shortage in the labor market, investments will also be made in staff and recruiting them.

A financial boost for your company

Okay, so a lot is going to happen in the near future. The corona support packages will not be renewed in the fourth quarter of 2021. Fortunately, there are still additional compensations and/or arrangements for various sectors, but the government is not yet clear what this means.

We all agree that the economy is recovering. Economists are confident that things will continue to go well even without the corona support packages.

Do you need more financial space? For example, to bridge a period or to further finance your growth? We are happy to think along with you and offer you financing that suits you and your company. Make your request online now, then we will call you within 24 hours with an informal proposal.

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